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Poster: micah6vs8 Date: Jun 1, 2010 3:32pm
Forum: GratefulDead Subject: Re: Lazy Journalism (non Dead)

Mando ,
I agree that my verb tense Is probably wrong . Just my ( futile ? ) glass half - full general approach . Can we please have FoI and total transparency re: the Fed . It seems we have slid to an awful mercantile - capitalist system ; where the state decides who is to big to fail and who isn't . Where the state is also a competitor against private concerns - while the state has the ultimate rainy day fund as a backstop , and can thus never be bested by price , efficiency , or better service . And to some of our business people , What's the deal , good year you keep the profits , bad year " too big to fail " . That Ain't working for me .
However , do you trust any of these people to handle the post - monetizing of the debt , and the insane hyper- inflation that would follow . I do not . I long since left Keynesian theory . Might I rec. F. A. Hayek and his book, The Road to Serfdom . Ludwig von Mises work I also recommend .

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Poster: spacedface Date: Jun 3, 2010 2:56am
Forum: GratefulDead Subject: Re: Lazy Journalism (non Dead)

The "Austrians" have some good points about business cycles, but what the town has no need to be nervous about the reincarnation of the Hayak and von Mises horse.

Hayak's support of Pinochet is enough proof, but consider also he was inspiration to Milton Friedman, Reagan, Bush. And Ron Paul has some good criticisms of American govt but avoids the real issues of the public and private spheres.

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Poster: Mandojammer Date: Jun 2, 2010 9:20am
Forum: GratefulDead Subject: Re: Lazy Journalism (non Dead)

Michah -

A true capitalistic society could easily fnction on its own - assuming of course that the monetary system that fuels the engine is based on sovereign credit instead of being loaned into existence as debt. That is our current model and it sucks. Exacerbating things is the fact that the organization charged with oversight of our debt based system - the Fed - isn't transparent. One could argue that the Central Banking system has outlived its usefulness - like unions and the Designated Hitter.

Hayek's "Serfdom" is a good work but a little doomer for me. I think the resiliency of the American people (and other countries) is greatly underestimated. We just haven't had a big enough systemic shock to force meaningful change within the system. Such a shock isn't going to happen until we reach a tipping point of awareness of just how fooked up things are.

I think you are starting to see the first rumblings in the Tea Party Movement. I'm not a Tea Party guy, I am a pure Constitutionalist. Mainstream Media is still trying to marginalize the Tea Party crowd as a fad and they might be right. Early on if you asked the "average" Tea Party bubba what they are all fired up about they will tell you "I'm mad" but they can't elaborate or qualify what it is they are mad about. Now, it seems like more and more of them (and us) are fed up with business as usual in DC. There is a growing sense that "business as usual" is part of the problem and as such, I would expect people to mount very successful runs at incumbents.

Once these people realize that the single largest threat to our National Security is our $100 trillion plus debt (obligated and unobligated) more and more will realize that the size of our Federal government and its runaway spending practices are the sole cause I would expect a top to bottom house cleaning.

Throw in the fact that there is no more cheap and easily available oil - all the oil that there was to discover in the world was discovered by 1964 - and that our "leaders" have absolutely no clue or forward vision on workable renewable energy alternatives and we have the ingredients for the "Perfect Storm".

The cool thing is - even if we don't do anything the problem solves itself. The debt machine will collapse under its own weight and when there is no more oil, we will be forced to figure something else out. How's that for true nonpartisanship?

First Iceland, then Greece, with Spain and Portugal waiting in the wings? How long before people wake up and realize that our debt burden is 700 times our GDP? Greece's was only 135%. We may be a big heavy domino, but we are just another domino in the chain that will surely fall.

And I'm not sure von Mises and his Austrian school is the right answer because they still allow for the issuance of credit (as debt) and we all know where that model ends up.

Great discussion.

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Poster: micah6vs8 Date: Jun 3, 2010 3:48pm
Forum: GratefulDead Subject: Re: Lazy Journalism (non Dead)

Mando -
Sorry if this is too late but I've been thinking about your post . A few questions - How do you create seed capitol for private concerns without debt ? And the state will always issue bonds , even with a balanced budget . How do handle liquidity without credit ?

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Poster: Mandojammer Date: Jun 8, 2010 9:17am
Forum: GratefulDead Subject: Re: Lazy Journalism (non Dead)

Micah -

I'm even later with the response - damn 3 day weekends.

It's pretty easy actually. Article I, Section 8 of the Constitution gives Congress the authority to "coin money, regulate the value thereof, and of foreign coin, and fix the standard of Weights and Measures." It also says that Congress will have the power to "borrow money on the 'credit' of the United States.

If the money was originally created as sovereign credit, borrowing against something that already has value is easy. We would also need to change the fractional banking system to actually require the banks to hold more of the sovereign credit money that is deposited. The problem we are all now familiar with is when you take existing debt and come up with derivatives of the original debt, and then create more derivatives.

So if this money were created as sovereign credit - meaining it would have to be used to "buy" things - it would then circulate as money with purchasing power. Instead, for whatever reason, money today is loaned into existence as interest bearing debt, or a claim on someone's future labor. By itself that might be okay except Congress abdicated their responsibility for oversight of this process and gave it a central banking system known as the Federal Reserve. There is nothing 'federal" about the Fed. We desperately need to shine a bright light on that den of cockroaches.

All that said, I don't think the framers of our Constitution ever envisioned a Congress so inept that collectively they couldn't pour piss out of a boot if the instructions were written on the sole.